Delivery Hero CEO expects consolidation, shares jump

Reuters Staff

1 Min Read

BERLIN, Jan 22 (Reuters) - The chief executive of Germany’s Delivery Hero said on Monday consolidation was likely in the sector, helping push up further shares in the online food ordering firm after Dutch rival Takeaway.com floated the idea of a merger.

Shares in Delivery Hero were up 5.2 percent at 0839 GMT, while Takeaway.com rose 3.5 percent.

Delivery Hero, which listed on the Frankfurt stock exchange last year, is the world’s biggest food delivery platform, but is battling for control of its home market with Takeaway.com and the fierce competition is weighing on profitability.

On Saturday, Takeaway.com CEO Jitse Groen said a merger with Delivery Hero could be an option.

“In each country, there can only be one supplier,” Groen was quoted as saying by German daily Tagesspiegel. (Reporting by Nadine Schimroszik; Writing by Emma Thomasson)